Legal compliance challenges in Baderman Island's expansion plans

Baderman Island Virtual Organization:

Baderman Island is a self-sufficient, all-encompassing resort destination that is surrounded by the shores of the Kelsey River. This Island is characterized with three different hotels, a number of restaurants, and a comprehensive list of activities to entertain and relax guests. Some of the featured hotels in this island include The Tenney, the Baderman Main Hotel, and Melancon Convention Center and Hotel. Since its inception, Baderman Island has developed to become a premiere relaxation and vacation destination. Given that there are more than 800 acres of wilderness that are yet to be developed, the organization is seeking to enhance its growth and development through a series of plans and projects that are currently underway. Some of these plans include adding extra 18 holes of golf, creation of a buffer area around the botanical gardens, expansion of its oasis spa, enhancing beach area, and improving tennis facilities. However, these improvement plans are accompanied with some legal compliance challenges that the company needs to develop appropriate measures to lessen liability.

Legal Compliance Challenges:

Based on the background information, Baderman Island has several opportunities for expansion that could help enhance the growth and productivity of this organization. While these opportunities present avenues through which the organization can grow, they also have some legal compliance challenges. The company should effectively identify the legal compliance challenges that could be present and examine various ways of lessening the liability brought by these challenges. Some of these legal compliance challenges can be addresses through development and establishment of employment practice compliance systems to enable the reduction of liability.

One of the major legal compliance issues for this company is the decision on which is the best investment option for the organization's expansion initiatives. In this case, the company could consider promoting its expansion through an Initial Public Offering (IPO), which will help in making the organization more productive and help in providing more activities and facilities to visitors. The other benefits of using an IPO for expansion include enhancing the value of the firm's stock for the investors and making the organization more attractive to the public, which will generate more money for the organization and investors. However, this option has some legal compliance issues regarding the likelihood of more splits in profits, which requires significant decisions by the company. The organization should comply with the law during the decision making process for expansion through an Initial Public Offering.

The second legal compliance challenge for the company is the need to comply with several laws to ensure that potential employees have equal employment opportunity and the creation of a fair and safe working environment. Currently, Baderman Island is managed by Boardman Management Group, which establishes strict set of guidelines for recruiting new workers and internal promotion ("Human Resources," n.d.). While this group has established strict hiring policies and procedures, the recruitment process itself is not friendly to the applicant or beneficial for the organization's welfare. This contributes to some legal compliance challenges based on several laws including Equal Employment Opportunity Act and American with Disabilities Act.

Probable Options to Lessen Liability from the Compliance Challenges:

Since these legal compliance issues can significantly affect the profitability and growth of the company, several measures should be undertaken to reduce liability emanating from them. With regards to the initial public offering, the company should incorporate the board of governors in the decision making process because of the necessity of a vote before any decision regarding the current or future facilities of the Island. The incorporation of the board will help to ensure that appropriate decisions are made and promote the establishment of measures that will the concerns and issues of investors. In relation to the employment policies and procedures, Baderman Island should consider several options for lessening liability from legal compliance issues. One of these options is to develop an employment handbook that guides human resource management based on employment laws. The development of such a handbook should involve the use of a legal consultant to help avoid discriminative policies and procedures. Secondly, the organization's management should ensure that all employment and advancement opportunities are based on qualifications, merit, and abilities as required by the law.

Employment Practice Compliance Systems:

Generally, legal compliance challenges associated with employment policies and practices can be dealt with through employment practice compliance systems. Employment practice compliance systems help in reducing liability from these challenges since employment laws have created new challenges in the business environment. The legal framework of modern business environment is based on an increased focus on equal employment opportunity because of the increase in unequal treatment of people in the workplace for several years (Mathis & Jackson, 2008, p.100). The legal compliance challenges originating from employment in Baderman Island are associated with probable unequal treatment of workers. Therefore, employment practice compliance systems will reduce liability by preventing unequal treatment and/or dealing with such incidents if they occur in the workplace.